Avolon shows the only way is up for aircraft leasing

AGENDA

Brian Carey

Sunday August 02 2015, 1.01am, The Sunday Times

Avolon has had early interest from two bidders

Brian Carey

Sunday August 02 2015, 1.01am, The Sunday Times

Avolon chief executive Dómhnal Slattery is in the most wonderful of positions. His aircraft leasing company has spent less than nine months on the stock market, yet two bidders are fighting tooth and nail to buy it at a massive 55% premium to the flotation price. A tender offer from the Chinese company Bohai for 20% of Avolon at $26 a share smoked out a rival bidder, who made an unsolicited approach at $30. This poked Bohai into offering $31 a share for the entire company.

It’s like Christie’s auction house. The higher offer values Avolon at $2.55bn (€2.3bn) — $1bn more than at IPO time in December. Why Bohai and its counter-bidder did not try to cut Avolon off at the pass ahead of